TAIPEI (dpa-AFX) - The U.S. Department of Commerce has awarded $6.6 billion subsidy to TSMC Arizona Corporation, or TSMC Arizona, for semiconductor production in Phoenix, Arizona.
TSMC Arizona, a subsidiary of Taiwan Semiconductor Manufacturing Company Limited, will get direct funding under the CHIPS Incentives Program's Funding Opportunity for Commercial Fabrication Facilities.
This will support the Phoenix, AZ-based company's planned investment of more than $65 billion in three greenfield leading-edge semiconductor fabrication facilities in Phoenix. The Department said it will disburse the funds based on TSMC Arizona's completion of project milestones.
President Joe Biden said, 'Today's final agreement with TSMC - the world's leading manufacturer of advanced semiconductors - will spur $65 billion dollars of private investment to build three state-of-the-art facilities in Arizona and create tens of thousands of jobs by the end of the decade'. This is the largest foreign direct investment in a greenfield project in the history of the United States, according to him.
'The first of TSMC's three facilities is on track to fully open early next year, which means that for the first time in decades an America manufacturing plant will be producing the leading-edge chips used in our most advanced technologies - from our smartphones, to autonomous vehicles, to the data centers powering artificial intelligence'. Today's announcement is among the most critical milestones yet in the implementation of the bipartisan CHIPS & Science Act, and demonstrates how we are ensuring that the progress made to date will continue to unfold in the coming years, benefitting communities all across the country,' he added.
Friday's final agreement, under the CHIPS Incentives Program, comes just weeks before President Joe Biden leaves the White House for President-elect Donald Trump.
Trump is a critic of the Biden administration's ambitious Program.
'TSMC appreciates the continual collaboration with customers, partners, local communities and the U.S. government beginning in early 2020. The signing of this agreement helps us to accelerate the development of the most advanced semiconductor manufacturing technology available in the U.S.,' said TSMC Chairman and CEO Dr. C.C. Wei.
CHIPS for America has awarded approximately $6.72 billion and allocated over $36 billion in proposed funding across 20 states and proposed to invest billions more in research and innovation, which is expected to create over 125,000 jobs. Since the beginning of the Biden-Harris Administration, semiconductor and electronics companies have announced over $450 billion in private investments.
At full capacity, TSMC Arizona's three fabs are expected to manufacture tens of millions of leading-edge logic chips that will power products like 5G/6G smartphones, autonomous vehicles, and high-performance computing and AI applications. The advanced chips that TSMC manufactures for its customers are the backbone of central processing units for servers in large-scale datacenters and of specialized graphics processing units used for machine learning.
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